Fundamentals of Bank Financial Statement Analysis

Course Objectives

Specifically, participants will be equipped to:

Distinguish the risks in the different business lines and products offered by financial institutions and recognise how they are reflected in the financial statements
Understand the components of bank financial statements and key ratios used in bank analysis
Recognise the impact of differing accounting standards and policies (e.g. provisioning, asset valuation, securitization etc.) on the financial statements
Use the CAMELS framework (capital, asset quality, management, earnings, liquidity and sensitivity to market risk) and key ratios to make a preliminary assessment of the performance and financial health of a bank.

Target Audience

This programme is designed for analysts who have limited or no experience in the analysis of financial statements for financial institutions. The workshop leads into the following intermediate level seminars: Intensive Bank Analysis, Emerging Market Bank Analysis and Non-Bank Financial Institutions.

Content

ANALYTIC OVERVIEW

Structured approach to analysis

Defining CAMELS within the context of overall bank analysis

Types of financial institution

Key activities and products of financial institutions: credit products, trading and investing, services and funding
Business models and key drivers of performance
Relating the business to the balance sheet and income statement: differences between balance sheets of different types of bank and non-bank financial institution
Major balance sheet and income statement components
Exercise: building a balance sheet for banks and non-bank financial institutions.

BUSINESS RISK

Asset quality

Statement logic and accounting: types of credit risk, on and off balance sheet, accounting for problem impaired loans
Loan quality: portfolio analysis, impaired/problem loans (past due, non accrual and restructured loans)
Reserve adequacy: provisioning levels, allowance, charge offs and recoveries
Trading and investments: securities and derivatives portfolios
Local and international benchmarks for key ratios and performance indicators
Exercises:
- problem loan definitions
- matching asset quality ratios

Sensitivity to market risk

Statement logic and accounting: valuation techniques for investments and derivatives – fair value through income statement, available for sale, held to maturity; SFAS 157 disclosures
Risk in the securities and derivatives portfolios
Value at risk and other measures of market risk: advantages and disadvantages

Earnings

Statement logic and accounting: types of income and expense, impact of earnings accrual and asset impairment policies, core and non-core earnings
Key drivers of earnings: net interest margin, fees and commissions, trading
Ratios to measure quality and diversity of income, cost control, provision burden
Local and international benchmarks for key performance indicators
Exercise: matching earnings ratios

FINANCIAL RISK

Liquidity and funding

Statement logic and accounting: funding sources, on and off balance sheet treatment for securitisation
Funding stability and different sources: deposits, commercial paper, repos, inter-bank lines, senior and subordinated bonds, common and preferred stock
Key drivers of liquidity: volatility of liabilities, quality and liquidity of assets, contingency funding needs
Local and international benchmarks for key liquidity and performance indicators
Exercise: matching liquidity ratios

Capital adequacy

Statement logic and accounting: types of capital, reported book equity, adjusted common equity and hybrid capital
Key drivers of capital: earnings, asset valuation, capital raising
International and local capital regulation: Basel I and II; Basel III changes
Risk weighted assets: Basel I vs. Basel II approach
Key ratios: tier one and total capital ratios, leverage, core capital and other measures
Local and international benchmarks for key performance indicators
Exercise: financial statement analysis.

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Kami memberikan alternatif Fasilitas atas Investasi anda dalam Program ini, diantaranya :

Sertifikat, Peralatan Training, USB, Souvenir, Lunch, Coffe Break, City Tour
Running minimal 2 Orang (Semarang, Jogja, Solo), Running minimal 3 Orang (Bandung, Jakarta), Running 4 Orang diperuntukan untuk daerah (Bali, Lombok, Manado, Balikpapan)
Kami menyediakan transportasi antar Jemput dari Stasiun/Bandara ke Tempat Pelatihan(Hotel) bagi perusahaan yang Running minim 2 Orang
Harga dilampirkan di Brosur Penawaran

Untuk daerah luar Kota Yogyakarta Harga Menyesuaikan.

Hotel Pilihan (Sementara) Bisa Menyesuaikan sesuai Kesepakatan.

Hotel Ibis Malioboro, Yogyakarta
Hotel Ibis, Solo
Hotel Ibis Simpang Lima Semarang
Hotel Fave, Balikpapan
The Santosa Villa and Resort, Lombok
Hotel Nagoya Plaza, Batam
Hotel Gino Ferruci, Bandung
Hotel Fave Pasar baru Jakarta, Jakarta
Hotel Santika Kuta, Bali
Hotel Aston, Manado
Hotel Santika Pandegiling, Surabaya

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Tambahan Informasi :

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Fundamentals of Bank Financial Statement Analysis